Local Market's Moment

Mar 1, 2004

Latin American markets seem to be treading water, unsure
what to do next after last year's great performance. Bond
issuance was its best since 1997, stock markets surged and
several currencies even rallied. Emerging market trading
reached its highest level in five years. After such a great
run, it is only natural for investors to catch their
breath.

The main source of the unease is easy to pinpoint. It lies
in Washington, home to the US Federal Reserve and the US
Treasury. Forecasters expect the Fed to raise interest rates at
some stage this year. However well the Fed...